CLA-2 CO:R:C:T 951183 CAB
Robert L. Follick, Esq.
Gibney, Anthony & Flaherty
665 Fifth Avenue
New York, NY 10022-5305
RE: Reconsideration of HRL 089289; classification of luggage
components; classifiable in Heading 4202
Dear Mr. Follick:
This letter is in response to your request, on behalf of
International Travel System of New Jersey, Ltd., for
reconsideration of Headquarters Ruling Letter (HRL) 089289, dated
December 9, 1991, under the Harmonized Tariff Schedule of the
United States Annotated (HTSUSA), concerning the tariff
classification of unfinished textile luggage.
FACTS:
The sample you initially provided was a bottom component of
a pullman suitcase. The top flap of a pullman suitcase was
submitted separate from the bottom component. The top flap
contains a half zipper sewn around the outside edge. The top
flap also has an outside pocket the width of the entire top flap
that contains a zipper as a means of closure. The pocket is
designed for toting miscellaneous smaller items. Each article is
made of a vinyl backed woven nylon material. The bottom
component measures approximately 31 x 24 inches, with an
expandable maximum width of 9 inches. The bottom component
appears to be complete and in a condition ready to be joined to
the lid portion of the finished suitcase; it has rigid edge and
corner piping, a carrying handle securely affixed to the top,
reinforcing straps sewn lengthwise onto the outside, inner straps
for holding clothing into place, a rigid bottom flap with plastic
fixtures for the attachment of wheels, and a half zipper sewn
around the appropriate edge.
The top portion and the bottom portion of the suitcase will
be imported separately. Also the straps which are attached to
each sample piece, and the hardware which accompanied the sample
bottom portion will be imported separately and at different
times. The final assembly would require sewing and riveting of
the top shell onto the bottom, sewing the straps on both the top
portion and the bottom portion, and attaching the hardware onto
the plastic fixtures.
You assert that the manufacturing time for each article is
approximately the same. You also indicate that the cost of the
bottom component is approximately 47 percent of the total cost;
the top flap constitutes approximately 43 percent of the total
cost, and the hardware makes up 10 percent of the final cost of
the product.
ISSUE:
Whether top and bottom luggage components have the essential
character of finished luggage in order to be considered
incomplete or unassembled items classifiable as luggage in
Heading 4202, HTSUSA, or whether the items are classifiable as
other made up articles in Heading 6307, HTSUSA?
LAW AND ANALYSIS:
Classification of merchandise under the HTSUSA is in
accordance with the General Rules of Interpretation (GRIs), taken
in order. GRI 1 provides that "classification shall be
determined according to the terms of the headings and any
relevant Section or Chapter notes." Merchandise that cannot be
classified in accordance with GRI 1 are to be classified in
accordance with subsequent GRI's, taken in order.
GRI 2(a) provides the following:
Any reference in a heading to an article shall be taken to
include a reference to that article incomplete or
unfinished, provided that, as entered, the incomplete or
unfinished article has the essential character of the
complete or finished article. It shall also include a
reference to that article complete or finished (or falling
to be classified as complete or finished by virtue of this
rule), entered unassembled or disassembled.
The Explanatory Notes (EN) to the HTSUSA constitute the
official interpretation of the tariff at the international level.
The EN to GRI 2(a) states in pertinent part:
(II) The provisions of this Rule also apply to blanks
unless these are specified in a particular heading. The
term "blank" means an article, not ready for direct use,
having the approximate shape or outline of the finished
article or part, and which can only be used, other than in
exceptional cases, for completion into the finished article
or part.
* * *
(VII) For the purposes of this Rule, "articles presented
unassembled or disassembled" means articles the components
of which are to be assembled either by means of simple
fixing devices (screws, nuts, bolts, etc.) or by riveting or
welding, for example, provided only simple assembly
operations are involved.
Heading 4202 provides for luggage, including suitcases,
traveling bags, and similar articles, of leather, plastics or
textile materials. In this instance, the top lid as imported
will include the handle and trim, a half zipper that surrounds
the edges of the lid, and an outside pocket. The bottom
component as imported will contain a half zipper that surrounds
its edges, handle, a bottom flap, and the plastic fixtures
necessary to attach the top component to the bottom component.
Given the general appearance of each of the sample pieces, and
the fact that neither piece is functional without the other, it
is clear each piece has the essential character of unfinished
luggage.
When examining the sample articles in light of the EN to
GRI 2(a), again, they seem to constitute unassembled goods. The
EN focus on the degree of assembly necessary to make the
component parts whole. The EN emphasize that the simpler the
assembly process, the more likely the articles should be deemed
unassembled goods. In this instance, there is very little post
importation processing required to transform the components into
a single piece of luggage. It is clear that the component parts
are substantially complete, and the simple procedures necessary
for completion is attaching the top portion of the article to the
bottom portion of the article, sewing the straps onto each
component, and attaching the hardware to each component.
You cite Glass Prd. Inc. v. U.S., 10 CIT 253, 641 F. Supp.
813 (1986), to substantiate your claim that the submitted samples
should be classified separately as component parts, and not as a
substantially complete article. You contend that Glass Prd. Inc.
determines that an eo nomine provision covers all forms of an
article but does not cover a part of the article unless the
tariff provision specifically provides for parts. However, this
case is not persuasive in this instance since it is based on
General Interpretative Rule 10(h) of the Tariff Schedules of the
United States (TSUS) which was replaced by the HTSUSA.
Therefore, in this instance, GRI 2(a) of the HTSUSA is applicable
in determining whether merchandise is sufficiently complete due
to its essential character to warrant classification as a
complete article.
You assert that Delco Electronics Div. General Motors Corp
v. United States, 11 CIT 661 (1987), represents the prevailing
case law that establishes the criteria to determine what makes an
article substantially complete based on an interpretation of Rule
10(h), TSUS. This criteria was originally listed in Daisy-
Heddon, Division of Victor Comptometer Corp. v. United States, 81
Cust. Ct. 55, C.D. 4765 (1978), aff'd, 66 CCPA 97 (1979). In
Headquarters Ruling Letter (HRL) 081623 of May 18, 1989, Customs
determined that cases which construe Rule 10(h) such as Daisy-
Heddon are not relevant to the interpretation of GRI 2(a), and
that GRI 2(a) is controlling.
It is your contention that the top portion, the bottom
portion, the hardware and straps, will all be imported
separately. The fact that the components will be imported
separately has no impact on the applicable classification of the
bottom portion and the top portion. Without the loose hardware
and the straps, each component continues to be recognizable as an
unfinished piece of luggage. There is no complex post
importation assembly necessary. Consequently, the bottom
component and the top component are both classifiable as
unfinished luggage in Heading 4202.
HOLDING:
The two components forming the suitcase, if imported
separately, are each properly classifiable in subheading
4202.19.0000, HTSUSA, which provides for trunks, suitcases,
vanity cases, attache cases, briefcases, school satchels,
spectacle cases, binocular cases, camera cases, musical
instrument cases, gun cases, holsters and similar containers;
traveling bags, toiletry bags, knapsacks and backpacks, handbags,
shopping bags, wallets, purses, map cases, cigarette cases,
tobacco pouches, tool bags, sports bags, bottle cases, jewelry
boxes, powder cases, cutlery cases and similar containers, of
leather or of composition leather, of plastic sheeting, of
textile materials, of vulcanized fiber or of paperboard, or
wholly or mainly covered with such materials. The applicable
rate of duty is 20 percent ad valorem.
The designated textile and apparel category may be
subdivided into parts. If so, the visa and quota requirements
applicable to the subject merchandise may be affected. Since
part categories are the result of international bilateral
agreements which are subject to frequent renegotiations and
changes, to obtain the most current information available, we
suggest that you check, close to the time of shipment, the Status
Report on Current Import Quotas (Restraint Levels), an internal
issuance of the U.S. Customs Service which is updated weekly and
is available for inspection at your local Customs office.
Due to the changeable nature of the statistical annotation
and the restraint (quota/visa) categories applicable to textile
merchandise, you should contact your local Customs office prior
to importation of this merchandise to determine the current
status of any import restraints or requirements.
Sincerely,
John Durant, Director
Commercial Rulings Division